The losses of India’s Adani conglomerate exceeded $100 billion on Thursday, following a short-seller report that led the corporate to stroll again a deliberate public share sale.
Losses throughout Gautam Adani’s essential companies hit $107 billion by 10 a.m. London time on Thursday for the reason that Jan. 24 publication of an intensive crucial report from New York’s Hindenburg Research, which disclosed a brief place in Adani Group firms.
Market worth loss for Adani firms
| Company identify | Market cap ($bn Jan 24) | Market cap ($bn Feb 2) | Total loss ($bn) | Total loss (%) |
|---|---|---|---|---|
| Adani Enterprises | 48.03 | 17.46 | 30.56 | 63.64 |
| Adani Green Energy | 37.09 | 18.01 | 19.09 | 51.45 |
| Adani Ports | 20.11 | 11.42 | 8.69 | 43.22 |
| Adani Transmission | 37.62 | 19.02 | 18.60 | 49.44 |
| Adani Total Gas | 52.29 | 21.76 | 30.53 | 58.39 |
| Adani Power | 12.97 | 9.01 | 3.96 | 30.51 |
| Adani Wilmar | 9.12 | 6.33 | 2.78 | 30.54 |
| Ambuja Cements | 12.11 | 8.24 | 3.88 | 31.99 |
| ACC | 5.37 | 4.09 | 1.28 | 23.90 |
| Total loss | 119.38 |
Source: CNBC, FactSet, as of 6 AM UTC on Feb. 3
After what it known as a two-year investigation, the report accused the conglomerate of “brazen stock manipulation and accounting fraud scheme over the course of decades.”
The Adani Group firmly denied the accusations, calling them “nothing but a lie” from the “Madoffs of Manhattan” in a 413-page riposte that failed to assuage skittish investor sentiment and rein in a speedy sell-off.
“It is tremendously concerning that the statements of an entity sitting thousands of miles away, with no credibility or ethics has caused serious and unprecedented adverse impact on our investors,” the Adani response stated, describing Hindenburg as an “unethical short seller.”
“Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws,” it stated.
Hindenburg on Jan. 29 retorted that the Adani commentary “predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming our report amounted to a ‘calculated attack on India’.”
Gautam Adani slipped out of Forbes’ Top 10 listing of the world’s richest males.
The swift share decline of Adani Group firms has sparked issues over broader systemic danger to Indian markets. India’s central financial institution has requested native banks for the small print of their publicity to the Adani conglomerate, Reuters reported Thursday, citing authorities and banking sources.
“Unprecedented” market situations and sharp fluctuations in the each day inventory worth pushed Adani Enterprises to axe its $2.5 billion follow-on public providing (FPO) on Wednesday.
“The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO,” Adani stated in an announcement.
The FPO sale was totally subscribed.
Shares for Adani Enterprises shed 26.7% throughout Thursday’s session, with Adani Ports down 6.6% and Adani Green and Adani Transmission every shedding 10%.
— CNBC’s Ganesh Rao contributed to this text.
